65.Find the value today of a 2-year dual currency bond with annual coupons (paid in U.S. dollars at a 5 percent coupon rate) that pays 500 per $1,000 par value at maturity. The cash flows of the bond are:

Year 0: 0

Year 1: $50

Year 2: $50 + 500

The dollar-based yield to maturity is i_$ = 3%; the spot exchange rate is $1.80 = 1.00; expected inflation over the next three years is p_$ = 2% in the U.S. and p = 3% in the U.K.

A.$927.62

B.$941.30

C.$965.06

D.$599.00